“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

Monday, December 10, 2007

BI to introduce new instruments to help banks with liquidity

The Jakarta Post, Jakarta

Bank Indonesia as the lender of the last resort will introduce new financial instruments early next year to help the country's banks meet their short-term liquidity needs, the central bank's senior executive says.

Deputy governor Budi Mulya said here Saturday that the facilities will include a wider variety of government bonds and central bank bills that lenders can use as underlying assets to obtain overnight lending from the central bank.

The central bank will also improve the repurchasing agreement -- or "repo" mechanism -- for the short-term trading and buying back of bonds and bills.

"BI wants to ensure banks that there will be facilities for their short-term liquidity needs," Budi was quoted as saying by Antara on Saturday.

He had previously mentioned as well that the central bank was also considering to change its monthly-based benchmark BI rate into an overnight rate, which will also help facilitate the short-term liquidity for the market.

Budi further explained that the standing facilities would avoid banks having to trade large sums of their bond and bill holdings for quick cash, which may potentially create volatility in the markets.

"Banks won't have to outright sell their holdings. They can instead temporarily lend them in the central bank, and in return, they will get the liquidity they need," he said. Such standing facilities are known as marginal lending facilities.

BI deputy governor Hartadi A. Sarwono announced last week the central bank's plan to issue six- and nine-month bills, apart of its usual one- and three-month bills. The wider variety of short-term bills are expected to allow for the better flow of market liquidity without huge potential for shocks.

The government also plans to issue short-term treasury bills, which will gradually replace BI's current bills. It has so far, however, only sold limited amounts of one-year bills, which has made the markets still relying on trading of the central bank bills.

Budi said the central bank will improve its auctioning mechanism for repo agreement, which it plans to run on a daily basis.

With repo agreements, bond holders can sell their holdings and buy them back later, gaining the proceeds they need, and in return provide short-term interest to buyers.

No comments: